Sapporo to sell Stone Brewing but not Richmond facility

Sapporo USA is selling its Stone Brewing Co. subsidiary, which operates its East Coast facility in Richmond, to a California-based brewer and the U.S. subsidiary of a Belgian company.

The buyers, Firestone Walker Brewing and Duvel Moortgat USA, announced Tuesday they’d signed a definitive agreement to acquire the Stone Brewing brand and four California locations. Financial terms of the transaction were not disclosed, but the acquisition is expected to close in the second quarter of this year.

Following the sale, Sapporo will consolidate its U.S. production at the Richmond facility, which will no longer be part of Stone Brewing.

Stone Brewing announced in 2014 it would open the East Coast production facility in Richmond’s Fulton neighborhood, although the city’s incentive package stirred some controversy. The brewery and tap room opened in 2016.

The company later announced plans in 2015 to build a bistro in Richmond’s long-vacant Intermediate Terminal building, but it never came to fruition. In July, DJ Mulkey, senior development manager for the Richmond Economic Development Authority, told Virginia Business that to the best of his recollection, a federal grant that would have made the project viable fell through, and Stone Brewing scrapped it.

Sapporo USA acquired Stone Brewing in 2022 for $165 million, and Sapporo-Stone Brewing said it was investing $40 million in expanding its Richmond operation.

The sale of Stone Brewing is part of Japanese parent company Sapporo Holdings’ restructuring to focus on its Sapporo brand business in the U.S., according to a Tuesday notice to investors.

“The Sapporo brand has achieved over 30% growth in the U.S. over the last four years, reflecting growing momentum in one of the world’s most important beer markets,” Sapporo Holdings Executive Vice President Rieko Shofu said in a statement. “We remain committed to continued investment in the U.S. as a cornerstone of our long-term global growth.”

While the Richmond facility becomes the company’s core U.S. production base for Sapporo brand products, the facility in Escondido, California, will continue to operate during a transition period. According to Sapporo Holdings’ notice, the company aims for the facility to stop manufacturing beer related to the Sapporo brands by the end of 2026.

Duvel USA will assume distribution responsibilities east of the Rockies, according to a news release, while Firestone Walker will oversee national accounts, California, the Western U.S., and Texas.

The production of Stone beers will “gradually transition” to Firestone Walker’s brewery in Paso Robles, California, and Duvel USA’s brewery in Kansas City, Missouri. The two companies said they expect to offer hospitality, sales and marketing positions to a “significant number” of Stone Brewing employees, and production positions will be assessed as brewing operations transition facilities.

“We are committed to a smooth transition for the Stone Brewing brand, our hospitality locations and, most importantly, our people over the coming months,” Sapporo-Stone Brewing CEO Zach Keeling said in a statement. “Being part of Stone’s legacy has been an honor, and we are confident its future is in excellent hands with Firestone Walker and Duvel USA.”

The four California locations included in the sale are Stone Brewing World Bistro & Gardens at Liberty Station in San Diego, which will continue its operations as an active brewing facility, and three tap rooms elsewhere in San Diego, Oceanside and Pasadena.